A complete timeline of China history with cryptocurrencies!

Earlier, China used to be a cryptocurrency trading and mining hotspot. However, the government authorities faced many challenges for almost a decade to acknowledge some methods to govern these digital currencies, expanding popularity and prohibiting it from decreasing the value of conventional banknotes, fiat currencies. Visit the bitcoin south african system to acknowledge crucial details regarding cryptocurrency trading. After facing challenges for a more extended period, the government authorities finally halted private and public cryptocurrencies in May 2021. Below listed is a complete history of China and cryptocurrencies. 

Key takeaway!

• China and the United States became some of the early adopters of cryptocurrency technology and its underlying principle technology, blockchain.
• Cryptocurrency exchanges are now an essential part of this marketplace, and China was the home ground to the first-ever exchange.
• China and the United States were the only countries to accept BTC payments in 2013.
• China kept outright imposing a ban on private cryptocurrencies and specific businesses related to these digital currencies until it utterly restricted all the virtual currency exchange of any kind.
• China is putting some efforts to educate citizens of China regarding cryptocurrencies by creating a government-approved digital currency, Yuan. Similar to stable coins, the market value of the Yuan will be roped with the Renminbi.

China’s relation with the cryptocurrency after the bitcoin release!

Everyone knows that the mastermind behind bitcoin approved the first software of this network in 2009. But bitcoin was not present on a single trading platform even after one year of its release. However, after the active traders and investors realized that bitcoin’s value is equal to one of the fiat currencies, it acquired traction in no time. In a few years, cryptocurrency accumulated attention from everyone. 

Every cryptocurrency investor noticed some gigantic returns in just a year or two, and these digital coins’ hotness expanded. As discussed above, China and the U.S were the only two countries to facilitate cryptocurrency investment actively. One of the famous search engine companies of China started to accept cryptocurrency as an exchange method just after three years of bitcoin’s release. In no time, Chinese industries acknowledged the profitability of mining, and China hosted more than 100 large scale mining operations. 

The gigantic mining plants in China were facing centralization issues. As in China, the equipment cost and price of electricity are significantly less, and miners moved to China to continue these operations. Bitmain, one of the leading giants of the cryptocurrency industry, entered the marketplace in 2014. Bitmain is both an ASIC manufacturer and cryptocurrency mining pool’s parent company. Bitmain manages the BTC TOP pool and ant pool, and both of these mining pools appear in the list of top5 mining pools.  

Chinese mining industry!

The mining business expanded its roots across the globe in 2017. Virtual currencies expanded as a store of value, and the mining business enticed everyone. However, after cryptocurrency mining expanded in China by an exceeding extent, the higher authorities started to address issues regarding energy consumption; in 2017, China executed the foremost ban on digital currencies as it suspended the emergence of initial coin offerings. China was concerned that the extraordinary usage of cryptocurrencies might eliminate the reliance on the country’s fiat currency. 

China and cryptocurrency in the past three years!

In the entire 2020, China performed the maximum number of mining operations. As discussed above, two leading mining pools of China contributed a massive amount of hash rate on bitcoin’s blockchain network. Initial coin offerings were already not able to proceed in China, but mining was still running. With an increment in some mining operations, higher authorities were concerned about the environmental impacts of cryptocurrency mining. 

After tolerating such dangerous impacts on the environment for a year, the government authorities decided to crack down on such currencies and other businesses related to these currencies. In May 2021, China came into action and cracked down on all the cryptocurrencies with bitcoin mining. The total hash rate of the global bitcoin mining chain started to slump after the mining ban in China. It was only 55% of the total hash rate before the mining ban in China. The hash rate started to fall in June 2021 as China intensified the crackdown this month. 

It is a complete overview of China’s history with cryptocurrency.